Silver As A 'Giffen Good': Setup Could Mean Even More Explosive Upside
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Money Metals Exchange5.89K FollowersFollow5ShareSavePlay(7min)Comment(1)SummaryA good is considered economically “inferior” when demand for it generally falls as incomes rise.As the price of silver has gone up, investment demand has increased sharply.When you combine the Giffen effect with the silver supply and demand dynamics, you have truly explosive upside price potential.Even with higher prices, it is unlikely that mine supply will quickly grow to erase the supply shortfall. Dragon Claws/iStock via Getty Images By Mike Maharrey Is silver a Giffen good? It appears to be behaving like one. A Giffen good, named after Scottish statistician and economist Sir Robert Giffen who developed the theory, is an “inferior good” This article was written byMoney Metals Exchange5.89K FollowersFollowMoney Metals Exchange is a top-rated online bullion dealer serving 750,000+ U.S. customers. Founded in 2010, it offers competitive pricing on gold, silver, platinum, palladium, rhodium, and copper, along with secure storage, IRAs, and metals-backed loans.Why Money Metals? ✅ No High-Pressure Sales – Transparent pricing & fair premiums ✅ Secure Storage – One of North America's largest private vaults ✅ Expert Insights – Market analysis published on Seeking Alpha & beyond ✅ Sound Money Advocate – Leading efforts to restore gold & silver’s role in currency Money Metals provides trusted service, deep market expertise, and a strong commitment to financial freedom.➡️ Follow Money Metals: ✅ Instagram ✅ YouTube ✅ Google SitesQuick InsightsHow does silver's Giffen good behavior impact its price trajectory?As silver demand rises alongside increasing prices, the Giffen effect could drive even more explosive price moves, especially when combined with supply constraints.What role does gold's price play in shifting investor demand toward silver?As gold becomes less affordable, investors—particularly in lower-income segments—shift more of their fixed investment budgets to silver, intensifying silver demand despite rising prices.How do current supply and demand dynamics set up silver for future performance?Silver is projected to face a 95 million ounce supply deficit in 2024, with cumulative deficits and inelastic supply supporting a highly bullish setup for future price appreciation.Recommended For You